As tax season approaches, businesses are busy preparing financial documents, filing returns, and meeting tight deadlines. Unfortunately, cybercriminals are just as busy — but for very different reasons.
Hackers use tax season to commit fraud, steal sensitive data, and create disruptions. In this article, we’ll explain why tax season is prime time for cyberattacks and how you can stay one step ahead of cybercriminals.
Why Tax Season Attracts Cybercriminals
1. Increased Exchange Of Sensitive Data
Tax season involves sharing sensitive financial and personal information – both within your organization and with external parties like accountants or payroll providers. This creates multiple points of vulnerability for hackers to exploit, especially through fake e-mails.
2. Tight Deadlines Lead To Mistakes
Under pressure to meet tax deadlines, employees may be less vigilant when reviewing emails, links, or file attachments. This increases the chances of falling victim to phishing scams or malware downloads.
3. Higher Volume Of E-mails
During tax season, businesses handle a flood of tax-related e-mails, including payment requests and compliance updates. Cybercriminals take advantage of this by sending realistic-looking phishing emails designed to intercept sensitive data.
4. Widespread Tax Scams
Hackers often impersonate trusted entities like the IRS or tax preparation services to trick businesses into sharing confidential information or making fraudulent payments. Strong tax season cybersecurity measures can help you identify and block these scams before they cause harm.
Common Tax Season Threats You Need To Watch Out For
- Phishing E-mails: Fraudulent messages claiming to be from the IRS, tax services, or your bookkeeper asking for sensitive information or directing you to malicious links.
- Fake Invoices or Payment Requests: Scammers send fake invoices, or payment demands to trick businesses into wiring money.
- Ransomware Attacks: Hackers may encrypt critical financial data and demand payment to release it.
- Social Engineering: Phone calls or e-mails impersonating accountants, payroll providers, or other trusted contacts to extract confidential information.
How To Protect Your Business This Tax Season
1. Train Your Team
Educate employees about the latest scams and how to recognize phishing attempts. Teach them to:
- Verify e-mail senders before opening attachments or clicking links.
- Be cautious of urgent payment requests or unusual account updates.
- Report suspicious e-mails immediately.
2. Secure Your Communications
Use encrypted portals or file-sharing tools instead of e-mail when exchanging sensitive tax documents. This reduces the risk of data interception.
3. Implement Multifactor Authentication (MFA)
Require MFA for access to financial systems, e-mail accounts, and any platforms used for tax-related activities. This extra security layer helps prevent unauthorized access even if login credentials are compromised.
We cannot stress the importance of this feature enough. If your password is compromised, this can help save you. If it’s an available feature on any account you have, please set it up.
4. Conduct A Cybersecurity Audit
Work with your IT provider to identify vulnerabilities in your systems before hackers can exploit them. Focus on:
- Updating software and applying security patches.
- Securing network endpoints and devices.
- Verifying data backup integrity.
5. Verify All Financial Requests
Double-check payment requests — especially those involving large sums or sensitive accounts. Confirm them via a second communication method, like a phone call, to ensure authenticity.
Stay One Step Ahead Of Cybercriminals
Don’t let tax season become an opportunity for cybercriminals. Strengthen your business’ cybersecurity, train your staff, and secure data exchanges to prevent costly breaches. Make sure you’re filing tax returns—not dealing with a security breach.
Start with a FREE Network Assessment to uncover potential vulnerabilities before hackers do.
